Behavioural Science Meets Regulation: Turning Insights into Impact

Written by Kerry Leaver, NRCoP South Australian Co-Chair and National Committee member.

At the October South Australian NRCoP event, participants were treated to an engaging exploration of how regulators can drive better compliance outcomes without always relying on legislative levers. The session featured two insightful presentations: one from Ivan Lebedev, Director of Analytics and Performance, and Meghan Ritchie, Director of Strategy and Governance at the South Australian Compulsory Third Party (CTP) Insurance Regulator, and the other from Joel Edwards, Assistant Director of the Environmental Pathways Reform Section at the Department of Climate Change, Energy, the Environment and Water.

Measuring Behaviour

Ivan and Meghan shared how the CTP Regulator’s Claimant Service Rating system has transformed insurer behaviour. The Regulator uses claimant experience feedback gathered two months into a personal injury claim to measure claimant satisfaction with their insurer. This is published on vehicle registration renewal notices alongside insurer premiums.

The published service rating influences insurer selection by the motorists, allowing the highest performing insurer to increase its market share and/or premiums. This feedback loop has nudged insurers toward a customer-centric culture. By identifying recurring themes with both poor and good claimant experiences, the regulator helps insurers see what’s working and what’s not and supports their pursuit of claimant service excellence.

Their key message was clear: behaviourally informed tools work best when they align market forces with regulatory goals. By tying good service to competitive advantage, insurers are motivated to improve voluntarily.  Aligning incentives with community outcomes, has also lightened the regulatory load, replacing red tape with real behavioural change. The most effective levers aren’t always legal ones – they’re the ones that speak to a regulated entity’s motivation.

Profiling Behaviour for Better Regulation

The second presentation drew on Joel’s research with EPA Victoria on behavioural science in regulation. Joel introduced and explored the Theory of Planned Behaviour, a framework that can help regulators understand what drives compliance – from individual attitudes and social norms to the perception of control over actions.

Participants took part in a workshop exercise, building behavioural profiles of CTP insurers to explore what might encourage ongoing quality service beyond the claimant service rating’s two-month window. The discussion showed how understanding an entity’s motivations, constraints, and perceived expectations can guide smarter, more targeted regulatory interventions.

The Takeaway

Both presentations underscored the same truth: effective regulation is as much about understanding people as it is about enforcing rules. By combining behavioural insight with collaboration, regulators can achieve meaningful change through influence as well as authority.

It was a session that reminded us that when behavioural science meets regulation, everyone benefits: regulators, industry, and the wider community.